Archive for the 'Procurement' Category

Can open source reduce costs?

Published by Ross Gardler on March 1, 2010 in Procurement, Development and Strategy and Policy. 0 Comments

It is often said that open source software will reduce costs.

Those with little or no experience of implementing computer systems assume these savings come from the fact the free and open source software does not carry a license fee. However, this is not usually the case.

Anyone who has rolled out an software solution, even in a small organisation, will tell you that there are hidden costs. These include training, support,  customisation and maintenance.

In 2005 BECTA published “A study of the spectrum of use and related ICT infrastructure costs” which concluded that training and support costs accounted for 60% of total cost for any software solution. The report also found that open source software reduced these costs by 40-50%.

Further to reducing training and support costs, open source can reduce the cost of customisation for specific environments.

It is extremely rare for a back-office software solution to be a perfect fit for any specific organisation straight out of the box. Consequently, the software needs to be customised to suit specific needs. In a closed source environment there is a single provider, or a limited set of approved providers, who can make these modifications. However, in an open source environment anyone with the appropriate skills can make these modifications, including internal staff.

As a result of this competition, market forces can often result in a lower cost for a tailored product. Just how much can be saved here depends on the customisations you need to make.

Finally, the open source culture of code sharing results in lower development costs for the software in the first instance. That is, once one user has commissioned a specific feature or configuration option the results of that work is available to all. As a result, the more a product is used and developed within any given domain, the more widely the development costs are shared. In addition to a reduction of costs open development can significantly increase the rate of innovation as it brings together great minds to collaborate on shared solutions.

Where there is no pre-existing solution to match ones needs the open developent model can be an extremely cost effective way of reducing cost. This process is examined in more detail in our document “Meritocrats, cluebats and the open development method: an interview with Justin Erenkrantz.”

Guest Post: FOSS and the European Parliament

Published by Rowan Wilson on June 1, 2009 in Guest, Procurement, Strategy and Policy and Community. 0 Comments

From time to time OSS Watch will be publishing guest blog posts here to highlight interesting opinions from around the FOSS community. This post is by Gerry Gavigan, chairman of the Open Source Consortium.

Elections for the European Parliament are scheduled for 2 June 2009, and this seems like an ideal opportunity to broach the subject of ICT policies and draw the attention of candidates to the issues surrounding choices by government and its administration concerning software and systems. Hopefully, this will at least raise the profile and gain better consideration of the underpinning issues and lead to wider adoption of Free and Open Source Software.

One initiative attempting to do this is the Free Software Pact (FSP) providing candidates with a method to inform the voting public that “they favour the development and use of Free Software, and will protect it from possible threatening EU legislation.”

As Chairman of the Open Source Consortium I was asked to help promote the FSP. Fundamentally I agree with the underlying objectives of the FSP but I am not sure that the approach to implementation is well thought through.

I am convinced that level playing fields coupled with open and transparent processes topped off with effective governance (easier said than done, of course) are all that Free Software needs for new installations and also to trickle through the arteries and capillaries of existing ICT deployments, eventually eliminating the externalities of proprietary software (largely summarisable as the deadweight costs arising from distortions in the market). I should add that this opinion is vendor neutral. I don’t care who it is or how Free Software is supplied.

If we are to achieve this nirvana we need to approach those we are seeking to influence in terms that are meaningful to them. This is not always easy but that is not an excuse not to try. And it may require several goes. Additionally if one is seeking to influence politicians or administrations is is easier to go with the grain of things than start again somewhere else.

With that in mind and prompted by the FSP, it seems right to put my drafting where my opinions were. Accordingly the OSC has created a draft form letter that hope as many people as possible will send it to the candidates in their constituency.

Dear…

Support Implementation of draft European Interoperability Framework V2 “EIF V2″

As you are a candidate in the forthcoming elections for the European Parliament I am writing to seek your support for a simple measure that will help citizens, businesses and European society.

Information and Communications Technology (ICT) has become a critical part of European infrastructure; a modern economy cannot function without it.

Optimal choices in ICT need a European policy on interoperability in ICT.

Interoperability means it does not matter how you mix and match the constituent parts of ICT, they will just work with each other without problems or issues. Such choice also means that users of your ICT systems (e.g., users of European or national government on-line services) do not have to make ICT choices based on your decisions, e.g., having to use a specific web browser (that itself may require a specific operating system).

Many European and national ICT systems have been implemented using software which does not enable easy interoperability, and instead creates an effect where it becomes easier, and some cases necessary, to choose more of the same supplier’s products, and harder to choose competing products.

Moreover, once governments or local administrations have decided to use software that does not enable easy interoperability, that choice imposes a requirement for the citizen or customer to choose the same software.

This network effect prevents choice, competition and limits opportunities to promote innovation outside vendor control, in the whole European arena for ICT.

To have agreed as policy the (draft) EIF V2 ( http://ec.europa.eu/idabc/en/document/7728) will halt and eventually reverse this situation.

This draft has been criticised by vendors currently benefiting from the current uneven playing field, but its adoption would not prevent any vendor, current or future, from supplying ICT to European or national governments.

The EIF is not considered to by all to be perfect, but getting it firmly “inside the tent” would enable it to be improved. I urge you to adopt or adapt this letter and write.

You can find your existing MEPs and candidates here.

Gerry Gavigan

Procuring Software is not (even) as simple as buying a car

Published by Ross Gardler on April 15, 2009 in Procurement, Business and Discussion. 3 Comments

Here at OSS Watch we often get asked things like “which is the best open source twitter alternative” or “which is the best open source financial managment tool?” We don’t answer these questions, and for good reason. Instead we focus on helping people understand how to find and evaluate open source software solutions. In this blog I’m going to try and explain why we take this approach.

With simple things like microblogging we can point to Laconica with a resonable amount of comfort, but should we really be ignoring Open Micro Blogger simply because we have not used it ourselves, after all, it does focus on a stronger and more scalable back-end. What about the solutions we’ve not yet heard of? A quick search for “open source microblogging” turns up a fair number of projects that are worth a look, not to mention a promising looking article with the title “Top 10 open source microblogging services. Perhaps it’s not as simple as we first thought.

If it is this hard to identify “best of breed” open source solutions for something as simple as a microblogging service how hard would it be for a “Financial Management and Reporting” system? These are complex systems that need to be customised (or at least configured) for each use case.

Sometimes the enquirer pushes a little harder, often indicating that it should be possible to identify “best of breed” and that OSS Watch should do so. However, our position remains firm, we can’t evaluate everything out there, but we can help people identify and evalate the options in the context of their needs.

Lets consider the financial software market. I’ve used Compiere for Financial Management in the past. I was very pleased with it, but it’s not really a financial system, it is a Enterprise Resource Planning and Customer Relationship Management system that has some financial functionality.Would the CRM and ERP functionality help or hinder our requestor?

As well as Compiere I’ve used a pen and paper based double entry ledger system. It worked, requires minimal technical knowledge and is easy to source. Unfortunately it is error prone, requires considerable training and usually needs a real accountant to do magic periodically, magic you don’t want to be paying accountant hourly rates for when software can do it, perhaps GnuCash or jGnash would be a better option. However, these are targetted at personal finance not business (or academic) finance.

Then there are OpenER, SQL Ledger, TurboCash and all the others that are out there. These are all “best of breed” within their own domain. They all have strengths and weaknesses. The “best” depends entirely on whether their strengths are important to the user whilst their weaknesses remain hidden.

How did I come up with the (incomplete) list of financial tools above? Simple, I spent 7 minutes (yes I timed myself) searching the web and making snap decisions on the viability of the open source community built around the products. I rejected another four or five as they looked like unsustainable or immature projects. It is this skill that I think we can offer to people looking for open source solutions. The customer must then narrow down the choice by looking at the feature set of the product base. Once a short list is drawn up, OSS Watch can help evaluate the support options available for the project, that is we can help the customer decide if the open source solution fits their culture, e.g. is there a suitable commercial support offering or is there an active and supportive developer community that internal IT staff can engage with?.

Even when we explain this in some detail we find that some people still insist that we should be able to tell them what to buy. So, I’ll say, here and now, as loud and clearly as I can:

Procuring something without actually considering the functionality it will need is insane. It is almost certainly doomed to fail.

A software procurement specialist once told me “there is never enough time to do it right, but there is always enough time to do it twice”. I wish I’d listened to him then (I’ll not go into why, but involves lots of wasted money). At least I’m listening now. If you are ready to listen, you can stop reading and contact OSS Watch when you want us to help you evaluate some open source solutions.

For those still unconvinced let me try and illustrate the problem in a domain most of us know a little about.

Imagine you are buying a new car. All cars have the the same basic functionality and features, they go forwards and backwards, they have a steering wheel and they stop before hitting things (assuming the driver is alert enough to hit the brakes).

Despite all cars being the same (when considering base functionality) we don’t walk into a the local car dealership and say “what’s the best car” and immmediately buy the first thing that comes into their mind. Instead we find out which are the most suitable cars for our kind of use (driving to the shops, commuting, long distance travel, fun at the weekend etc.). We probably also read literature and reviews. Most of us would test drive a couple of our favourites. Eventually we would buy one.

It’s true that we rely on reviews and salespeople to help us narrow down the choice, but we have other methods for making the final selection, and, importantly, we would usually ask salespeople from each of the major manufacturers.

Anyone who watches car “review” programmes like Top Gear knows that even in the simple world of cars there is never a clear winner between two cars built for the same purpose. One will be better cruising on the motorway, the other may be better on country lanes. One will be cheaper to run, but the other mighter be cooler to look at, but beauty is in the eye of the beholder. It is not usually possible to say “this car is better than that car, regardless ofwho you are and what you are looking for”.

Sometimes it is possible to say “this car is just rubbish, it broke down 5 times in our road tests”, but once you get past obvious flaws that affect everyone you have to understand the drivers needs before saying “this car is the perfect car for you”. I’m 6′ 4″tall, I simply don’t fit comfortably into some cars, it doesn’t matter if everyone else in the world thinks it is the perfect car, for me it is rubbish.

[This is getting to be a long post so I won’t even start on considering maintanence options for the car once it is purchased.]

Since most people wouldn’t ask a really general question such as “what is the best car?”, why do people insist on asking OSS Watch things like “which is the best open source financial management software solution?”

OSS Watch can help you procure open source solutions, but we can’t tell you what to buy - sorry, it just is not that simple.